GameStop selling game publisher in deal valued at $55M

GameStop Corp. is selling game publisher Kongregate in a deal with a $55 million enterprise value.

According to a statement from GameStop (NYSE: GME), Swedish digital entertainment, e-sports and gaming company Modern Times Group is acquiring San Francisco-based Kongregate, which sold itself to GameStop in 2010.

“We believe the sale of Kongregate to MTG is good for both Kongregate and GME,” GameStop added. “It allows Kongregate to receive additional investment they need to continue to grow and thrive in their market segment. It allows us to use the proceeds from the acquisition in shareholder friendly ways.”

This year, Kongregate expects to bring in at least $50 million in net sales, after reporting revenues of $35 million in 2016, VentureBeat added.

“Our vision has always been to nurture the development of indie game developers and the consumer gaming community,” Emily Greer said in a prepared statement. “Our values are all about integrity, collaboration, and most of all, fun. MTG is not only a great partner as we continue to step up our expansion into new gaming platforms and channels, but the right partner because they share our values and commitment to empowering indie development teams to create unique and innovative gaming experiences for consumers across any and all game platforms.”